Avesoro Resources Inc., (“Avesoro” or the “Company”), the TSX and AIM listed West African gold producer, is pleased to announce the results of an upgraded Mineral Resource and Mineral Reserve Estimate, and an updated Life of Mine (“LOM”) plan, for its Youga Gold Mine (“Youga”) in Burkina Faso.

Highlights:

Four year LOM extension to 2031 based on current Proven and Probable Mineral Reserves, with potential to extend further with additional drilling of existing Mineral Resources to upgrade the confidence level and prospective satellite targets across the Company’s 763km2 exploration portfolio surrounding the Youga, Ouaré and Balogo deposits;

Total upfront capital of US$17.7 million for the construction of the Ouaré to Youga haul road, Tailings Storage Facility (“TSF”) upgrades and the mobilization of contract operations, plus sustaining capital costs of US$17.8 million, including TSF expansion and mine closure;

Average LOM operating cash costs of US$877 per ounce and all in sustaining cash costs (“AISC”) of US$973 per ounce2; and

Youga post tax NPV of US$142.6 million at a 5% discount rate with a US$1,300/oz gold price and LOM free cash flow generation of US$186.8 million.

Notes:

1. Mineral Resources are inclusive of Mineral Reserves.

2. See “Non-GAAP Financial Measures”.

Serhan Umurhan, Chief Executive Officer of Avesoro, commented: “Following the previous announcement of the updated Mineral Reserve and Mineral Resource estimates for the New Liberty gold mine in March 2019 and now the Youga gold mine today, I am pleased to confirm that we have successfully added 950,000 ounces of gold to the Company’s combined Mineral Reserve inventory, net of mining depletion, as a result of the Company’s 2018 exploration campaign across its license portfolio in Liberia and Burkina Faso. Each of our assets experienced an increase in Mineral Reserves, net of depletion, and as a result, we have substantially extended the lives of both our mines. I now expect the Company to sustain group level gold production above 200,000 ounces per annum for each of the next four years as indicated by the updated mine plans.

Following the Mineral Resource and Mineral Reserve upgrades for both New Liberty and Youga, the combined project level post tax Net Present Value (NPV5%) is indicated to be US$428.6 million after project and equipment finance debt repayments of US$100 million, and the combined project level post-debt and post-tax LOM cash flows are indicated as US$556.8 million, at US$1,300/oz gold price.

We are continuing to assess a number of optimisation options, including ore sorting and heap leach scenarios, to further improve the economics of both projects in addition to the significant potential to add further economic ounces to the projects with additional drilling.”

Table 1: Summary of Forecast Project Physicals for each Full Year of Production

Parameter

Unit

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

Total

Mining Physicals

Youga Open Pit

Waste

Tonnes

kt

19,464

4,374

–

1,098

3,715

9,220

11,677

12,044

1,357

–

–

–

–

62,948

Marginal Tonnes

kt

88

35

–

6

170

253

117

95

68

–

–

–

–

832

Ore

Tonnes

kt

995

395

–

0

880

1,382

1,291

588

636

–

–

–

–

6,167

ROM

Grade

g/t Au

3.35

1.61

–

0.68

1.33

1.19

1.16

1.55

1.75

–

–

–

–

1.67

Strip

Ratio

W:O

17.98

10.15

–

180.42

3.54

5.64

8.30

17.63

1.93

–

–

–

–

8.99

Balogo Open Pit

Waste

Tonnes

kt

1,296

10,247

–

–

–

–

–

–

–

–

–

–

–

11,543

Marginal Tonnes

kt

0

9

–

–

–

–

–

–

–

–

–

–

–

9

Ore

Tonnes

kt

43

154

–

–

–

–

–

–

–

–

–

–

–

197

ROM

Grade

g/t Au

5.74

6.22

–

–

–

–

–

–

–

–

–

–

–

6.11

Strip

Ratio

W:O

29.65

62.86

–

–

–

–

–

–

–

–

–

–

–

55.84

Ouare open Pit

Waste

Tonnes

kt

–

10,780

14,698

9,704

5,431

1,781

–

–

–

–

–

–

–

42,393

Marginal Tonnes

kt

–

276

1,077

875

1,162

145

–

–

–

–

–

–

–

3,535

Ore

Tonnes

kt

–

685

2,454

1,463

1,850

271

–

–

–

–

–

–

–

6,723

ROM

Grade

g/t Au

–

1.96

1.92

2.18

1.57

1.38

–

–

–

–

–

–

–

1.86

Strip

Ratio

W:O

–

11.22

4.16

4.15

1.80

4.28

–

–

–

–

–

–

–

4.13

Production Physicals

Milled

Tonnes

kt

1,200

1,203

1,200

1,200

1,200

1,203

1,200

1,200

1,200

1,203

1,200

1,200

334

14,744

Milled

Grade

g/t Au

2.82

2.33

3.01

2.54

2.05

1.44

1.42

1.35

1.35

0.88

0.85

0.82

0.87

1.72

Recovered Gold

koz

97.86

81.20

104.80

88.31

71.15

50.19

49.20

46.96

46.83

30.82

29.68

28.64

8.42

734.07

As indicated in Table 1 above, forecast production at the Youga gold mine is 6.16 Mt of run of mine (“ROM”) ore at Youga plus 197,390 kt of ROM ore at Balogo, and 6.72 Mt of ROM ore at Ouaré for total recovered gold production of 734,066 ounces. Based upon the current known Mineral Reserves, the overall LOM is 11 years (including a period of stockpile reclaim following the cessation of mining activities in 2027), with an average mill feed rate of 100,000 tonnes per month at an average grade of 1.72 g/t Au maintained over the LOM.

Mining activities at the Youga pits is expected to pause temporarily in 2021 with the Youga mill processing ore from Balogo, and Ouaré during that time. Operations at the previously mined Balogo satellite pit recommence in December 2019 and continue through to December 2020 when the pit is closed. Development of Ouaré, located 44km to the East of the Youga process plant, commences with construction of the haul road in Q4 2019/Q1 2020 with production commencing in Q2 2020 and continuing through to early 2024.

Ore production from the Youga open-pits recommence in Q1 2023 until the cessation of open-pit operations in early 2027. Based on current known Mineral Reserves, the Youga mill will continue to process ROM ore from the Ouaré deposit and stockpile reclaim until Q1 2031 after which the mine would close.

Table 2: Key LOM Financial

Parameter

Unit

LOM Total

Pre-Tax Project NPV1,3

US$m

173.4

Post-Tax NPV1,2,3

US$m

142.6

Free Cash – Life of Mine2

US$m

186.8

LOM Operating Cash Cost3

US$/oz

877

LOM AISC3

US$/oz

973

Notes:

1 At 5% discount rate and US$1,300/oz Au price

2 After tax

3 See “Non-GAAP Financial Measures”

Updated Mineral Resource and Mineral Reserve Estimate

The updated Mineral Resource and Reserve Estimates were produced by CSA Global (UK) Ltd with an effective date of December 31, 2018.

Mineral Resource Estimate for the Youga Gold Mine, Burkina Faso, as at December 31, 2018

Deposit

Cut-off grade (g/t)

Measured

Indicated

Measured and Indicated

Inferred

Tonnes (Mt)

Au grade (g/t)

Au metal (koz)

Tonnes (Mt)

Au grade (g/t)

Au metal (koz)

Tonnes (Mt)

Au grade (g/t)

Au metal (koz)

Tonnes (Mt)

Au grade (g/t)

Au metal (koz)

Netiana

0.60

0.03

7.63

7.5

0.13

6.76

29.2

0.17

6.92

36.8

0.0

1.8

1

Main Pit

0.55

2.96

1.53

145.6

2.96

1.53

145.6

0.8

1.4

36

Zergoré

0.55

2.57

1.20

99.1

2.57

1.20

99.1

1.0

1.2

39

NTV

0.55

1.88

1.10

66.6

1.88

1.10

66.6

1.5

1.3

61

A2N East

0.55

0.20

1.38

9.1

0.20

1.38

9.1

0.1

1.6

6

A2N Middle

0.55

0.02

6.38

3.7

0.07

6.31

14.4

0.09

6.32

18.1

0.0

6.4

5

Gassore

0.55

0.93

3.69

110.3

0.93

3.69

110.3

0.5

4.0

61

East Pit

0.55

0.68

1.55

33.8

0.68

1.55

33.8

0.0

1.2

2

West Pit 1

0.55

0.1

1.6

5

West Pit 2

0.55

0.57

1.46

26.8

0.57

1.46

26.8

0.2

1.5

8

West Pit 3

0.55

0.64

1.53

31.5

0.64

1.53

31.5

0.2

1.2

7

West Pit 4

0.55

0.33

1.54

16.3

0.33

1.54

16.3

0.4

0.9

13

LeDuc

0.55

1.0

1.0

34

Ouaré

0.65

11.14

1.66

595.1

11.14

1.66

595.1

1.7

1.8

99

Total

0.05

7.17

11.3

22.11

1.66

1,177.8

22.16

1.67

1,189.1

7.6

1.5

377

Notes:

1. The effective date of the Mineral Resource Statement is 31 December 2018.

2. The Mineral Resources have been depleted for mining up to 31 December 2018. The Ouaré Mineral Resources have no historic mining but has been depleted for orpailleur workings.

3. Mineral Resources are reported above a surface based on the NPVS shell from a US$1,500 gold price pit optimisation run to support assumptions relating to reasonable prospects of eventual economic extraction.

4. Figures have been rounded to the appropriate level of precision for the reporting of Mineral Resources.

5. Due to rounding, some columns or rows may not compute exactly as shown.

6. The Mineral Resources are stated as in situ dry tonnes. All figures are in metric tonnes.

7. The Mineral Resource has been classified under the guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council (2014), and procedures for classifying the reported Mineral Resources were undertaken within the context of the Canadian Securities Administrators National Instrument 43-101 (NI 43-101).

8. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

9. Mineral Resources have been reported inclusive of Mineral Reserves, where applicable.

Mineral Reserve estimated for the Youga Gold Mine, Burkina Faso, as at 31 December 2018

Deposit

Cut-off grade

Proven

Probable

Total Mineral Reserve

(g/t)

Tonnes

Au grade

Au metal

Tonnes

Au grade

Au metal

Tonnes

Au grade (g/t)

Au metal

(Mt)

(g/t)

(koz)

(Mt)

(g/t)

(koz)

(Mt)

(koz)

Netiana

1.10

0.06

5.56

10.5

0.14

6.35

28.3

0.20

6.11

38.8

Mid Pit

0.70

0.02

5.98

3.5

0.06

5.88

11.3

0.08

5.90

14.8

Gassore

0.70

0.67

3.74

80.0

0.67

3.74

80.0

Zergoré

0.70

1.46

1.22

57.1

1.46

1.22

57.1

West Pit 2

0.70

0.37

1.34

15.8

0.37

1.34

15.8

West Pit 3

0.70

0.39

1.61

20.2

0.39

1.61

20.2

West Pit 4

0.70

0.26

1.53

12.6

0.26

1.53

12.6

Main Pit

0.70

1.27

1.63

66.6

1.27

1.63

66.6

East Pit

0.70

0.47

1.47

22.4

0.47

1.47

22.4

NTV

0.70

1.21

1.07

41.6

1.21

1.07

41.6

Ouaré

0.84

6.72

1.86

403.0

6.72

1.86

403.0

TOTAL (exc. stocks)

0.08

5.66

14.0

13.01

1.81

758.9

13.09

1.84

772.9

Youga Stockpiles

1.64

0.78

41.1

1.64

0.78

41.1

Balogo Stockpiles

0.02

1.34

0.9

0.02

1.34

0.9

TOTAL (inc. stocks)

0.08

5.66

14.0

14.67

1.70

800.85

14.74

1.72

814.9

Technical Report

The Mineral Reserve and Resource Estimate and Updated LOM plan was completed by CSA Global UK Ltd (“CSA”) with input from Avesoro and has an effective date of January 1, 2019. A supporting Technical Report, prepared in accordance with the requirements of National Instrument 43-101 will be filed on SEDAR at www.sedar.com and on the Company’s corporate website www.avesoro.com within 45 days of the date of this press release.

Non-GAAP Financial Measures

The Company has included certain non-GAAP financial measures in this press release, including operating cash costs, all-in sustaining costs (“AISC”) per ounce of gold sold and net present value (“NPV”). These non-GAAP financial measures do not have any standardised meaning. Accordingly, these financial measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with International Financial Reporting Standards (“IFRS”).

Operating cash costs and AISC are a common financial performance measure in the mining industry but have no standard definition under IFRS. Operating cash costs are reflective of the cost of production.

Other companies may calculate these measures differently and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Contact Information

Avesoro Resources Inc.

Geoff Eyre / Nick Smith

Tel: +44(0) 20 3405 9160

Camarco

(IR / Financial PR)

Gordon Poole / Nick Hennis

Tel: +44(0) 20 3757 4980

finnCap

(Nominated Adviser and Joint Broker)

Christopher Raggett / Scott Mathieson / Camille Gochez

Tel: +44(0) 20 7220 0500

Berenberg

(Joint Broker)

Matthew Armitt / Detlir Elezi

Tel: +44(0) 20 3207 7800

Hannam & Partners

(Joint Broker)

Rupert Fane / Ingo Hofmaier / Ernest Bell

Tel: +44(0) 20 7907 8500

About Avesoro Resources Inc.

Avesoro Resources is a West Africa focused gold producer and development company that operates two gold mines across West Africa and is listed on the Toronto Stock Exchange (“TSX”) and the AIM market operated by the London Stock Exchange (“AIM”). The Company’s assets include the New Liberty Gold Mine in Liberia (“New Liberty”) and the Youga Gold Mine in Burkina Faso (“Youga”).

New Liberty has an estimated Proven and Probable Mineral Reserve of 17Mt with 1,365,000 ounces of gold grading 2.49g/t and an estimated Measured and Indicated Mineral Resource of 20.47Mt with 1,748,200 ounces of gold grading 2.66g/t and an estimated Inferred Mineral Resource of 3.0Mt with 271,000 ounces of gold grading 2.8g/t. A supporting Technical Report summarising the PFS, prepared in accordance with CIM guidelines, is set out in an NI 43-101 compliant Technical Report dated January 31, 2019 and entitled “NI 43-101 Pre-Feasibility Report, Mineral Resource and Mineral Reserve Update for the New Liberty Gold Mine, Liberia” and is available on SEDAR at www.sedar.com.

Youga has an estimated Proven and Probable Mineral Reserve of 14.7Mt with 814,900 ounces of gold grading 1.72g/t and a combined estimated Measured and Indicated Mineral Resource of 22.16Mt with 1,189,100 ounces of gold grading 1.67g/t and an Inferred Mineral Resource of 7.6Mt with 377,000 ounces of gold grading 1.5g/t. A supporting Technical Report summarising the PFS, prepared in accordance with the requirements of National Instrument 43-101 will be filed on SEDAR at www.sedar.com and on the Company’s corporate website www.avesoro.com within 45 days of the date of this press release.

The information in this press release relating to the Mineral Resource estimates for the Youga Gold Mine have been prepared by Dr. Belinda van Lente, who is a registered Professional Natural Scientist (Pr.Sci.Nat) of the South African Council for Natural Scientific Professions. Dr. van Lente is a full-time employee of CSA Global (UK) Ltd and has sufficient experience which is relevant to the style(s) of mineralisation and type of deposit(s) under consideration and to the activity which she has undertaken to qualify as a “Qualified Person” as defined in NI 43-101. Dr. van Lente has reviewed and approved this press release and consents to the inclusion in the press release of the matters based on her information, in the form and context in which this appears.

The information in this press release relating to the open pit Mineral Reserves for the Youga Gold Mine has been prepared by Dr. Matthew Randall, who is Chartered Engineer and a registered Member of the Institute of Materials, Minerals and Mining (IMMM) of the UK. Dr. Matthew Randall is an associate mining engineer of CSA Global (UK) Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken to qualify as a “Qualified Person” as defined in NI 43-101. Dr. Matthew Randall has reviewed and approved this press release and consents to the inclusion in the announcement of the matters based on his information, in the form and context in which this appears.

Except as set forth above, the other scientific and technical information in this press release relating to the Youga Gold Mine has been prepared by Andrew Bamber, who is a registered Professional Engineer (P.Eng.) with the Association of Professional Engineers and Geoscientists of British Columbia (APEGBC) and a Member of the Canadian Institute of Mining, Metallurgy and Petroleum Engineers (CIM). Dr. Bamber is a director of Bara Consulting Ltd. and an associate of CSA Global (UK) Ltd., and has sufficient experience relevant to the type of deposit under consideration and to the work which he has undertaken to qualify as a “Qualified Person” as defined in NI 43-101. Dr. Bamber has reviewed and approved this press release and consents to the inclusion in the press release of the matters based on his information, in the form and context in which this appears.

The Company’s Qualified Person is Mark J. Pryor, who holds a BSc (Hons) in Geology & Mineralogy from Aberdeen University, United Kingdom and is a Fellow of the Geological Society of London, a Fellow of the Society of Economic Geologists and a registered Professional Natural Scientist (Pr. Sci.Nat) of the South African Council for Natural Scientific Professions. Mark Pryor is an independent technical consultant with over 25 years of global experience in exploration, mining and mine development and is a “Qualified Person” as defined in NI 43-101, and has reviewed and approved this press release. Mr. Pryor has verified the underlying technical data disclosed in this press release.

Forward Looking Statements

Certain information contained in this press release constitutes forward looking information or forward-looking statements within the meaning of applicable securities laws. This information or statements may relate to future events, facts, or circumstances or the Company’s future financial or operating performance or other future events or circumstances. All information other than historical fact is forward looking information and involves known and unknown risks, uncertainties and other factors which may cause the actual results or performance to be materially different from any future results, performance, events or circumstances expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “would”, “project”, “should”, “believe”, “target”, “predict” and “potential”. No assurance can be given that this information will prove to be correct and such forward looking information included in this press release should not be unduly relied upon. Forward looking information and statements speak only as of the date of this press release.

Forward looking statements or information in this press release include, among other things, all of the projected and forecast economic and operational results for the Youga Gold Mine, including statements of total forecast recovered gold of 734,066 ounces over LOM, average LOM operating cash costs of US$877 per ounce, LOM AISC of US$973 per ounce, post tax NPV of US$142.6million at a 5% discount rate (and US$1,300/oz gold price) and LOM free cash generation of US$155.3million.

This release also contains references to estimates of Mineral Resources and Mineral Reserves. The estimation of Mineral Resources and Mineral Reserves is inherently uncertain and involves subjective judgments about many relevant factors. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation (including estimated future production, the anticipated tonnages and grades that will be mined and the estimated level of recovery that will be realized), which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that may ultimately prove to be inaccurate. Mineral Resource or Mineral Reserve estimates may have to be re-estimated based on: (i) fluctuations in the gold price; (ii) results of drilling, (iii) the results of metallurgical testing and other studies, including their subsequent refinement and updating; (iv) proposed mining operations, including dilution; (v) the evaluation of mine plans subsequent to the date of any estimates; (vi) changes in mining or other costs, and (vii) the possible failure to receive required permits, approvals and licenses or changes to existing mining licences.

In making the forward looking information or statements contained in this press release, assumptions have been made regarding, among other things: general business, economic and mining industry conditions; interest rates and foreign exchange rates; the continuing accuracy of Mineral Resource and Mineral Reserve estimates; geological and metallurgical conditions (including with respect to the size, grade and recoverability of Mineral Resources and Mineral Reserves) and cost estimates on which the Mineral Resource and Mineral Reserve estimates are based; the supply and demand for commodities and precious and base metals and the level and volatility of the prices of gold; market competition; the ability of the Company to raise sufficient funds from capital markets and/or debt to meet its future obligations and planned activities and that unforeseen events do not impact the ability of the Company to use existing funds to fund future plans and projects as currently contemplated; the stability and predictability of the political environments and legal and regulatory frameworks including with respect to, among other things, the ability of the Company to obtain, maintain, renew and/or extend required permits, licences, authorizations and/or approvals from the appropriate regulatory authorities; that contractual counterparties perform as agreed; and the ability of the Company to continue to obtain qualified staff and equipment in a timely and cost-efficient manner to meet its demand.

Actual results could differ materially from those anticipated in the forward-looking information or statements contained in this press release as a result of risks and uncertainties (both foreseen and unforeseen) and should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. These risks and uncertainties include the risks normally incidental to exploration and development of mineral projects and the conduct of mining operations (including exploration failure, cost overruns or increases, and operational difficulties resulting from plant or equipment failure, among others); the inability of the Company to obtain required financing when needed and/or on acceptable terms or at all; risks related to operating in West Africa, including potentially more limited infrastructure and/or less developed legal and regulatory regimes; health risks associated with the mining workforce in West Africa; risks related to the Company’s title to its mineral properties; the risk of adverse changes in commodity prices; the risk that the Company’s exploration for and development of mineral deposits may not be successful; the inability of the Company to obtain, maintain, renew and/or extend required licences, permits, authorizations and/or approvals from the appropriate regulatory authorities and other risks relating to the legal and regulatory frameworks in jurisdictions where the Company operates, including adverse or arbitrary changes in applicable laws or regulations or in their enforcement; competitive conditions in the mineral exploration and mining industry; risks related to obtaining insurance or adequate levels of insurance for the Company’s operations; that Mineral Resource and Reserve estimates are only estimates and actual metal produced may be less than estimated in a Mineral Resource or Reserve estimate; the risk that the Company will be unable to delineate additional Mineral Resources; risks related to environmental regulations and cost of compliance, as well as costs associated with possible breaches of such regulations; uncertainties in the interpretation of results from drilling; risks related to the tax residency of the Company; the possibility that future exploration, development or mining results will not be consistent with expectations; the risk of delays in construction resulting from, among others, the failure to obtain materials in a timely manner or on a delayed schedule; inflation pressures which may increase the cost of production or of consumables beyond what is estimated in studies and forecasts; changes in exchange and interest rates; risks related to the activities of artisanal miners, whose activities could delay or hinder exploration or mining operations; the risk that third parties to contracts may not perform as contracted or may breach their agreements; the risk that plant, equipment or labour may not be available at a reasonable cost or at all, or cease to be available, or in the case of labour, may undertake strike or other labour actions; the inability to attract and retain key management and personnel; and the risk of political uncertainty, terrorism, civil strife, or war in the jurisdictions in which the Company operates, or in neighbouring jurisdictions which could impact on the Company’s exploration, development and operating activities.

Although the forward-looking statements contained in this press release are based upon what management believes are reasonable assumptions, the Company cannot provide assurance that actual results or performance will be consistent with these forward-looking statements. The forward looking information and statements included in this press release are expressly qualified by this cautionary statement and are made only as of the date of this press release. The Company does not undertake any obligation to publicly update or revise any forward looking information except as required by applicable securities laws.